Pf deduction

This query is : Open

S.Siju Gemin (Querist)
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10 August 2012 Dear Experts,

One of our employees salary was increased from Rs.12000/- to Rs.20000/- in the month of April 2012.

Since April 2012 we had fixed Rs.10000/- as his basic salary and have been deducting PF on Rs.10000/-.

Now in the month of August 2012 employee wants his basic salary to be reduced to Rs.6500/- and PF deducted on Rs.6500/-

Is this possible?

CA Amit Jaiswal

CA Amit Jaiswal (Expert)
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10 August 2012 This is possible.

If the Basic salary is INR 6500/-, then PF to be deducted on this amt only.

You can give him the remaining salary in the form of allowances.

Ki$hor B

Ki$hor B (Expert)
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10 August 2012 It's possible. Give your payroll division the green signal to restructure the CTC of the employee as per his requirement.